Ernst & Young Agrees To Pay $4 Million Over Lobbying Violations

A national accounting firm has agreed to pay $4 million to settle charges by the Securities and Exchange Commission that the firm violated rules relating to lobbying activities while claiming to be an independent auditor.

In the settlement, Washington Council EY, a unit of Ernst & Young, agreed to pay $4,071,925.98 including disgorgement, interest, and civil penalty. The settlement details the House and Senate lobbying activities of the firm, including letters, meetings, and draft legislation.

The summary of the settlement stated,

“These proceedings arise out of certain legislative advisory services provided by Washington Council EY (“WCEY”), which has been part of EY since 2000.

“Prior to 2009, certain conduct related to WCEY’s provision of legislative advisory services violated the independence rules with respect to two of EY’s SEC-registrant audit clients. For example, WCEY sent letters urging passage of bills to congressional staff on behalf of one of its clients (hereinafter, “Client A”). These bills were important to Client A’s business interests. In another instance, WCEY asked congressional staff to insert into a bill a provision favorable to Client A. For another audit client (hereinafter, “Client B”), WCEY attempted to persuade congressional offices to withdraw their support for legislation detrimental to that client’s business interests. In addition, WCEY worked closely with congressional staff in drafting an alternative bill more favorable to Client B. WCEY also marked up a draft of the alternative bill, inserting specific language written by Client B, and sent the mark-up to congressional staff.

“Despite providing the services described herein, EY repeatedly represented that it was “independent” in audit reports issued on Client A’s and Client B’s financial statements, which were included or incorporated by reference in public filings with the Commission.

“By doing so, EY violated Rule 2-02(b)(1) of Regulation S-X and caused Client A and Client B to violate Section 13(a) of the Exchange Act and Rule 13a-1 thereunder. EY’s conduct also constituted improper professional conduct pursuant to Section 4C(a)(2) of the Exchange Act and Rule 102(e)(1)(ii) of the Commission’s Rules of Practice.”

Comments (2)

YONATAN C

July 15, 2014
1:05 p.m.

While life continues to go on as normal for many in our country, there are still more than three million unemployed families without an extension of benefits since late last December. While the republican senate fought tooth & nail to pass the Koch brother’s oil pipeline bill, they totally rejected passing the extension bill, which would have helped these millions of families. Now, both political parties have walked away from the issue, leaving these families in financial ruin and deep poverty without recourse. Billions are spent on foreign aid and the military, but the poor & unemployed are left without help. Where’s our country’s priorities and compassion?

William LaSalle

June 12
3:01 p.m.

Not one Damn Incumbent.

Why shouldn’t the FCC be as corrupt as the EPA, IRS, and the Bureau of Land Management under Obama’s Administration ?

Barack Obama, George Soros, and Hilary Clinton should be in prison.

Is any of George Soros’s money used for anything other than violence, Terrorism, and Coups ?

Why would the monsters in charge in the Islamic Nations that support Terrorism all over the world and the communist George Soros support Hilary Clinton ?

Why wouldn’t they ?

Barack Obama’s and Hilary Clinton’s support and praise of Mohamed Morsi’s and the Muslim Brotherhood Terrorist Group’s Arab Spring was Treason.

George Soros is an Undesirable Illegal Alien and his Global Warming Fraud is a disgusting lie.

End the Patriot Act, the Monsanto can Poison the United States Bill, Obamacare, the NDAA, the Patriot Act, Operation Jade Helm, and shred Barack Obama’s Executive Orders. Get CAIR, the Muslim Brotherhood, the Hamas, Valerie Jarrett, and Barack Obama out of our Government.

In the United States our heritage is not being slaves to our government.

Our heritatage is Freedom.

This is not Kenya.

Not one Damn Incumbent.

Islam has spread child abuse, abuse of women, torture, murder, and war since 600 AD and does the same today.

In the nations of the United Nations with Islamic Law there are no Human Rights or Freedoms.

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